LONDON, Nov 30 Reuters The dollar eased from a oneweek high on Wednesday ahead of a speech by Federal Reserve Chair Jerome Powell, while optimism over a possible loosening in China39;s COVID restrictions set it on course for its biggest monthly loss since late 2010.

Euro zone inflation in November showed the first monthly deceleration since June last year, as harmonised consumer prices rose by just 10 last month, compared with expectations for an increase of 10.4 in November, and against October39;s final reading of 10.6.

It is still more than five times the European Central Bank39;s target rate. But after almost two years of nearrelentless acceleration in inflation, markets could welcome any sign that the worst may be over.

European assets got a lift on Tuesday after inflation in Spain and a number of major German states cooled.

Headline inflation is still way too high and above ECB staff projections, but the direction of travel matters. Base effects will become more powerful from here, and unless we get another energy or food shock, headline is heading down fast, Frederick Ducrozet, who is head of macroeconomic research at Pictet Wealth Management, tweeted.

The euro was last up 0.4 at 1.0366, lifting off a oneweek low earlier on Wednesday at 1.0319. Against sterling, it fell 0.1 to 86.30 pence.

The U.S. dollar index , which measures the performance of the greenback against six major currencies, fell 0.37 to 106.48, down from an overnight high of 106.90.

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